Financial Supplement

EXHIBIT 99.1

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2008

(UNAUDITED)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2008

(UNAUDITED)


		Page
Consolidated Results:
Income Statement		1
Balance Sheet		2
Capital Ratios		2
Average Balance Sheet and Supplemental Average Balance Sheet Information		3 - 4
Details of Net Interest Income and Net Interest Margin		5
Selected Income Statement Information and Trading Revenue		6
Details of Loans		7
Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit, and Net Unfunded Commitments		8
Details of Nonperforming Assets		9 - 10
Business Segment Results:
Business Segment Products and Services		11
Summary of Earnings and Revenue		12
Period-end Employees		12
Retail Banking		13 - 15
Corporate & Institutional Banking		16
PFPC		17
Glossary of Terms		18 - 20

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on April 17, 2008. We have reclassified certain prior period amounts included in this Financial Supplement to be consistent with the current period presentation. This information speaks only as of the particular date or dates included in the schedules. We do not undertake any obligation to, and disclaim any duty to, correct or update any of the information provided in this Financial Supplement. Our future financial performance is subject to risks and uncertainties as described in our United States Securities and Exchange Commission (“SEC”) filings.

Sterling Financial Corporation Acquisition

While not reflected in this Financial Supplement, we completed our acquisition of Sterling Financial Corporation (“Sterling”) on April 4, 2008. Sterling shareholders received an aggregate of approximately $224 million in cash and 4.6 million shares of PNC common stock.

Hilliard Lyons Divestiture

On March 31, 2008, we completed the sale of J.J.B. Hilliard, W.L. Lyons, LLC (“Hilliard Lyons”), a Louisville, Kentucky-based wholly-owned subsidiary of PNC and a full-service brokerage and financial services provider, to Houchens Industries, Inc. We recognized an after-tax gain of $23 million in the first quarter of 2008 in connection with this divestiture.

Yardville National Bancorp Acquisition

We completed our acquisition of Yardville National Bancorp (“Yardville”) on October 26, 2007 and our financial results include Yardville from that date. PNC issued approximately 3.4 million shares of PNC common stock and paid approximately $156 million in cash as consideration for the acquisition. PNC converted the Yardville banking charter and financial and customer data onto PNC’s financial and operational systems during March 2008.

Mercantile Acquisition

We completed our acquisition of Mercantile Bankshares Corporation (“Mercantile”) on March 2, 2007 and our financial results include Mercantile from that date. PNC issued approximately 53 million shares of PNC common stock and paid approximately $2.1 billion in cash as consideration for the acquisition. PNC converted the Mercantile banking charters and financial and customer data onto PNC’s financial and operational systems during September 2007.

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Income Statement (Unaudited)


	*Three months ended*
*In millions, except per share data*	March 31 2008			December 31 2007			September 30 2007			June 30 2007			March 31 2007
Interest Income
Loans	$	1,071		$	1,123		$	1,129		$	1,084		$	896
Securities available for sale		404			398			366			355			310
Other		144			149			132			115			109

Total interest income		1,619			1,670			1,627			1,554			1,315

Interest Expense
Deposits		450			522			531			532			468
Borrowed funds		315			355			335			284			224

Total interest expense		765			877			866			816			692

Net interest income		854			793			761			738			623

Noninterest Income
Fund servicing		228			215			208			209			203
Asset management		212			225			204			190			165
Consumer services		170			179			177			179			157
Corporate services		164			180			198			176			159
Service charges on deposits		82			90			89			92			77
Net securities gains (losses)		41			(1	)		(2	)		1			(3	)
Other		70			(54	)		116			128			233

Total noninterest income		967			834			990			975			991

Total revenue		1,821			1,627			1,751			1,713			1,614
Provision for credit losses		151			188			65			54			8
Noninterest Expense
Personnel		544			553			553			544			490
Occupancy		95			95			87			81			87
Equipment		82			84			77			79			71
Marketing		22			29			36			29			21
Other		299			452			346			307			275

Total noninterest expense		1,042			1,213			1,099			1,040			944

Income before income taxes		628			226			587			619			662
Income taxes		251			48			180			196			203

Net income	$	377		$	178		$	407		$	423		$	459

Earnings Per Common Share
Basic	$	1.11		$	.53		$	1.21		$	1.24		$	1.49
Diluted	$	1.09		$	.52		$	1.19		$	1.22		$	1.46

Average Common Shares Outstanding
Basic		339			338			337			342			308
Diluted		342			341			340			346			312

Efficiency		57	%		75	%		63	%		61	%		58	%
Noninterest income to total revenue		53	%		51	%		57	%		57	%		61	%
Effective tax rate (a)		40.0	%		21.2	%		30.7	%		31.7	%		30.7	%

(a)

The effective tax rates are presented on a GAAP basis. The higher effective tax rate for the first quarter of 2008 was due to taxes associated with the gain on the sale of Hilliard Lyons. The lower effective tax rate for the fourth quarter of 2007 was primarily due to lower pretax income in relation to tax credits and earnings that are not subject to tax.

Page 1

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Balance Sheet (Unaudited)


*In millions, except par value*	March 31 2008			December 31 2007			September 30 2007			June 30 2007			March 31 2007
Assets
Cash and due from banks	$	3,934		$	3,567		$	3,318		$	3,177		$	3,234
Federal funds sold and resale agreements		2,157			2,729			2,360			1,824			1,604
Other short-term investments, including trading securities		3,987			4,129			3,944			3,667			3,041
Loans held for sale		2,516			3,927			3,004			2,562			2,382
Securities available for sale		28,581			30,225			28,430			25,903			26,475
Loans, net of unearned income of $951, $990, $986, $1,004, and $1,005		70,802			68,319			65,760			64,714			62,925
Allowance for loan and lease losses		(865	)		(830	)		(717	)		(703	)		(690	)

Net loans		69,937			67,489			65,043			64,011			62,235
Goodwill		8,244			8,405			7,836			7,745			7,739
Other intangible assets		1,105			1,146			1,099			913			929
Equity investments		6,187			6,045			5,975			5,584			5,408
Other		13,343			11,258			10,357			10,265			9,516

Total assets	$	139,991		$	138,920		$	131,366		$	125,651		$	122,563

Liabilities
Deposits
Noninterest-bearing	$	19,176		$	19,440		$	18,570		$	18,302		$	18,191
Interest-bearing		61,234			63,256			59,839			58,919			59,176

Total deposits		80,410			82,696			78,409			77,221			77,367
Borrowed funds
Federal funds purchased		5,154			7,037			6,658			7,212			5,638
Repurchase agreements		2,510			2,737			1,990			2,805			2,586
Federal Home Loan Bank borrowings		9,663			7,065			4,772			104			111
Bank notes and senior debt		6,842			6,821			7,794			7,537			4,551
Subordinated debt		5,402			4,506			3,976			4,226			4,628
Other		3,208			2,765			2,263			2,632			2,942

Total borrowed funds		32,779			30,931			27,453			24,516			20,456
Allowance for unfunded loan commitments and letters of credit		152			134			127			125			121
Accrued expenses		3,878			4,330			4,077			3,663			3,864
Other		6,341			4,321			5,095			4,252			4,649

Total liabilities		123,560			122,412			115,161			109,777			106,457

Minority and noncontrolling interests in consolidated entities		2,008			1,654			1,666			1,370			1,367
Shareholders’ Equity
Preferred stock (a)
Common stock—$5 par value Authorized 800 shares, issued 353 shares		1,764			1,764			1,764			1,764			1,764
Capital surplus		2,603			2,618			2,631			2,606			2,520
Retained earnings		11,664			11,497			11,531			11,339			11,134
Accumulated other comprehensive loss		(779	)		(147	)		(255	)		(439	)		(162	)
Common stock held in treasury at cost: 12, 12, 16, 11, and 7 shares		(829	)		(878	)		(1,132	)		(766	)		(517	)

Total shareholders’ equity		14,423			14,854			14,539			14,504			14,739

Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	139,991		$	138,920		$	131,366		$	125,651		$	122,563

Capital Ratios
Tier 1 risk-based (b)		7.7	%		6.8	%		7.5	%		8.3	%		8.6	%
Total risk-based (b)		11.4			10.3			10.9			11.8			12.2
Leverage (b)		6.8			6.2			6.8			7.3			8.7
Tangible common equity		4.7			4.7			5.2			5.5			5.8
Common shareholders’ equity to assets		10.3			10.7			11.1			11.5			12.0

(a)	Less than $.5 million at each date.

(b)	The ratios as of March 31, 2008 are estimated.

Page 2

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited)


	*Three months ended*
*In millions*	March 31 2008			December 31 2007			September 30 2007			June 30 2007			March 31 2007
Assets
Interest-earning assets:
Securities available for sale
Residential mortgage-backed	$	20,506		$	20,592		$	19,541		$	19,280		$	17,198
Commercial mortgage-backed		5,538			4,921			4,177			3,646			3,338
Asset-backed		2,849			2,704			2,454			2,531			1,876
U.S. Treasury and government agencies		90			155			281			344			394
State and municipal		411			306			233			203			162
Other debt		84			52			25			33			79
Corporate stocks and other		494			458			381			383			347

Total securities available for sale		29,972			29,188			27,092			26,420			23,394
Loans, net of unearned income
Commercial		29,147			27,528			26,352			25,845			21,479
Commercial real estate		8,986			8,919			8,272			8,320			5,478
Lease financing		2,484			2,552			2,581			2,566			2,534
Consumer		18,897			18,150			17,954			17,886			16,865
Residential mortgage		9,411			9,605			9,325			8,527			7,173
Other		391			400			393			411			527

Total loans, net of unearned income		69,316			67,154			64,877			63,555			54,056
Loans held for sale		3,607			3,408			2,842			2,611			2,955
Federal funds sold and resale agreements		3,040			2,516			2,163			1,832			2,092
Other		5,384			4,926			4,342			3,606			2,735

Total interest-earning assets		111,319			107,192			101,316			98,024			85,232
Noninterest-earning assets:
Allowance for loan and lease losses		(852	)		(749	)		(708	)		(692	)		(612	)
Cash and due from banks		3,027			3,089			3,047			2,991			2,945
Other		27,061			25,418			23,977			22,997			19,857

Total assets	$	140,555		$	134,950		$	127,632		$	123,320		$	107,422


Supplemental Average Balance Sheet Information (Unaudited)

Trading Assets
Securities (a)	$	3,872		$	3,486		$	3,293		$	2,144		$	1,569
Resale agreements (b)		2,129			1,320			1,267			1,247			820
Financial derivatives (c)		2,808			1,785			1,389			1,221			1,115
Loans at fair value (c)		114			148			164			161			193

Total trading assets	$	8,923		$	6,739		$	6,113		$	4,773		$	3,697

(a)	Included in “Interest-earning assets-Other” above.

(b)	Included in “Federal funds sold and resale agreements” above.

(c)	Included in “Noninterest-earning assets-Other” above.

Page 3

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited) (Continued)


	*Three months ended*
*In millions*	March 31 2008		December 31 2007		September 30 2007		June 30 2007		March 31 2007
Liabilities, Minority and Noncontrolling Interests, and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	25,405	$	24,697	$	24,151	$	23,979	$	22,503
Demand		9,580		9,587		9,275		9,494		8,671
Savings		2,625		2,662		2,841		2,988		2,250
Retail certificates of deposit		16,556		16,921		16,563		17,426		15,691
Other time		3,813		1,948		2,748		2,297		1,623
Time deposits in foreign offices		6,026		6,488		4,616		4,220		3,129

Total interest-bearing deposits		64,005		62,303		60,194		60,404		53,867
Borrowed funds
Federal funds purchased		5,564		5,232		6,249		6,102		4,533
Repurchase agreements		2,614		2,875		2,546		2,507		1,858
Federal Home Loan Bank borrowings		8,233		6,339		2,097		106		64
Bank notes and senior debt		6,754		7,676		7,537		5,681		4,182
Subordinated debt		4,649		4,118		4,039		4,466		4,370
Other		4,247		2,353		2,741		2,459		1,813

Total borrowed funds		32,061		28,593		25,209		21,321		16,820

Total interest-bearing liabilities		96,066		90,896		85,403		81,725		70,687
Noninterest-bearing liabilities, minority and noncontrolling interests, and shareholders’ equity:
Demand and other noninterest-bearing deposits		17,564		18,472		18,211		17,824		15,807
Allowance for unfunded loan commitments and letters of credit		135		127		125		121		126
Accrued expenses and other liabilities		10,690		9,035		8,117		7,655		7,961
Minority and noncontrolling interests in consolidated entities		1,817		1,658		1,414		1,367		893
Shareholders’ equity		14,283		14,762		14,362		14,628		11,948

Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	140,555	$	134,950	$	127,632	$	123,320	$	107,422


Supplemental Average Balance Sheet Information (Unaudited) (Continued)

Deposits and Common Shareholders’ Equity
Interest-bearing deposits	$	64,005	$	62,303	$	60,194	$	60,404	$	53,867
Demand and other noninterest-bearing deposits		17,564		18,472		18,211		17,824		15,807

Total deposits	$	81,569	$	80,775	$	78,405	$	78,228	$	69,674

Transaction deposits	$	52,549	$	52,756	$	51,637	$	51,297	$	46,981

Common shareholders’ equity	$	14,276	$	14,755	$	14,355	$	14,621	$	11,941

Trading Liabilities
Securities sold short (a)	$	2,127	$	1,748	$	1,960	$	1,431	$	1,264
Repurchase agreements and other borrowings (b)		661		630		637		669		363
Financial derivatives (c)		2,856		1,772		1,400		1,230		1,126
Borrowings at fair value (c)		30		39		41		40		39

Total trading liabilities	$	5,674	$	4,189	$	4,038	$	3,370	$	2,792

(a)	Included in “Borrowed funds-Other” above.

(b)	Included in “Borrowed funds-Repurchase agreements” and “Borrowed funds-Other” above.

(c)	Included in “Accrued expenses and other liabilities” above.

Page 4

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Net Interest Income and Net Interest Margin (Unaudited)

Net Interest Income


	*Three months ended*
*In millions*	March 31 2008			December 31 2007			September 30 2007			June 30 2007			March 31 2007
Interest income, taxable-equivalent basis
Loans	$	1,076		$	1,127		$	1,134		$	1,088		$	899
Securities available for sale		405			398			368			355			310
Other		147			152			131			119			112

Total interest income		1,628			1,677			1,633			1,562			1,321

Interest expense
Deposits		450			522			531			532			468
Borrowed funds		315			355			335			284			224

Total interest expense		765			877			866			816			692

Net interest income, taxable-equivalent basis		863			800			767			746			629
Less: Taxable-equivalent adjustment		9			7			6			8			6

Net interest income, GAAP basis	$	854		$	793		$	761		$	738		$	623


Net Interest Margin

	*Three months ended*
	March 31 2008			December 31 2007			September 30 2007			June 30 2007			March 31 2007
Average yields/rates
Yield on interest-earning assets
Loans		6.18	%		6.62	%		6.89	%		6.81	%		6.68	%
Securities available for sale		5.41			5.46			5.42			5.37			5.31
Other		4.88			5.51			5.56			5.94			5.83
Total yield on interest-earning assets		5.83			6.19			6.37			6.35			6.23
Rate on interest-bearing liabilities
Deposits		2.82			3.31			3.49			3.52			3.52
Borrowed funds		3.89			4.88			5.22			5.28			5.33
Total rate on interest-bearing liabilities		3.17			3.81			3.99			3.98			3.95

Interest rate spread		2.66			2.38			2.38			2.37			2.28
Impact of noninterest-bearing sources		.43			.58			.62			.66			.67

Net interest margin		3.09	%		2.96	%		3.00	%		3.03	%		2.95	%

Page 5

THE PNC FINANCIAL SERVICES GROUP, INC.


Selected Consolidated Income Statement Information and Trading Revenue (Unaudited)


		*Three months ended*
SELECTED CONSOLIDATED INCOME STATEMENT INFORMATION *In millions*		March 31 2008			December 31 2007			September 30 2007			June 30 2007			March 31 2007
Description	Income Statement Category
Commercial mortgage loans and commitments held for sale valuations, net of hedges	Other noninterest income	$	(177	)	$	(30	)
Trading income (losses) (a)	Other noninterest income		(76	)		(10	)	$	33		$	29		$	52
Gain on sale of Hilliard Lyons (b)	Other noninterest income		114
Visa redemption gain	Other noninterest income		95
Equity management gains	Other noninterest income		23			21			47			2			32
BlackRock LTIP shares mark-to-market adjustment	Other noninterest income		37			(128	)		(50	)		(1	)		(30	)
BlackRock LTIP shares distribution gains	Other noninterest income		3												82
Integration costs	Various		15			79			43			16			13
Visa indemnification liability	Other noninterest expense		(43	)		82
(a) For the first quarter of 2008 and the fourth quarter of 2007, Corporate & Institutional Banking and Retail Banking generated trading income which was more than offset by trading losses in Other, including BlackRock. (b) The impact of the gain was $23 million after taxes.
		*Three months ended*
TRADING REVENUE *In millions*		March 31 2008			December 31 2007			September 30 2007			June 30 2007			March 31 2007
Net interest income (expense)		$	16		$	7		$	(1	)	$	1
Noninterest income			(76	)		(10	)		33			29		$	52

Total trading revenue		$	(60	)	$	(3	)	$	32		$	30		$	52


Securities underwriting and trading (c)		$	(9	)	$	10		$	14		$	8		$	9
Foreign exchange			16			16			15			13			14
Financial derivatives			(67	)		(29	)		3			9			29

Total trading revenue		$	(60	)	$	(3	)	$	32		$	30		$	52

(c)	Includes changes in fair value for certain loans accounted for at fair value.

Page 6

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Loans (Unaudited)


*Period ended - in millions*	March 31 2008			December 31 2007			September 30 2007			June 30 2007			March 31 2007
Commercial
Retail/wholesale	$	6,298		$	5,973		$	5,506		$	5,388		$	5,424
Manufacturing		5,170			4,705			4,609			4,575			4,614
Other service providers		3,563			3,529			3,816			3,726			3,566
Real estate related (a)		5,701			5,425			4,232			4,821			4,741
Financial services		1,390			1,268			1,901			1,587			1,596
Health care		1,605			1,446			1,256			1,266			1,180
Other		5,912			6,261			5,415			4,581			4,617

Total commercial		29,639			28,607			26,735			25,944			25,738

Commercial real estate
Real estate projects		6,448			6,114			5,807			5,767			5,756
Mortgage		2,603			2,792			2,507			2,564			2,597

Total commercial real estate		9,051			8,906			8,314			8,331			8,353

Lease financing		3,464			3,500			3,539			3,587			3,527

Total commercial lending		42,154			41,013			38,588			37,862			37,618

Consumer
Home equity		14,315			14,447			14,366			14,268			14,263
Education		2,024
Automobile		1,533			1,513			1,521			1,962			1,956
Other		2,156			2,366			2,270			1,804			1,769

Total consumer		20,028			18,326			18,157			18,034			17,988

Residential mortgage		9,299			9,557			9,605			9,440			7,960
Other		272			413			396			382			364
Unearned income		(951	)		(990	)		(986	)		(1,004	)		(1,005	)

Total, net of unearned income	$	70,802		$	68,319		$	65,760		$	64,714		$	62,925

(a)	Includes loans related to customers in the real estate, rental, leasing and construction industries.

Page 7

THE PNC FINANCIAL SERVICES GROUP, INC.

Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit, and Net Unfunded Commitments (Unaudited)

Change in Allowance for Loan and Lease Losses


*Three months ended - in millions*	March 31 2008			December 31 2007			September 30 2007			June 30 2007			March 31 2007
Beginning balance	$	830		$	717		$	703		$	690		$	560
Charge-offs
Commercial		(70	)		(60	)		(38	)		(27	)		(31	)
Commercial real estate		(11	)		(12	)		(3	)		(1	)
Lease financing		(1	)
Consumer		(28	)		(24	)		(17	)		(15	)		(17	)

Total charge-offs		(110	)		(96	)		(58	)		(43	)		(48	)
Recoveries
Commercial		8			10			5			8			7
Commercial real estate											1
Consumer		4			3			4			2			5

Total recoveries		12			13			9			11			12
Net charge-offs
Commercial		(62	)		(50	)		(33	)		(19	)		(24	)
Commercial real estate		(11	)		(12	)		(3	)
Lease financing		(1	)
Consumer		(24	)		(21	)		(13	)		(13	)		(12	)

Total net charge-offs		(98	)		(83	)		(49	)		(32	)		(36	)
Provision for credit losses		151			188			65			54			8
Acquired allowance (a)					15						(5	)		142
Net change in allowance for unfunded loan commitments and letters of credit		(18	)		(7	)		(2	)		(4	)		16

Ending balance	$	865		$	830		$	717		$	703		$	690


(a) Amount for the fourth quarter of 2007 related to Yardville and amounts for the first and second quarters of 2007 related to Mercantile.

Net charge-offs to average loans (For the three months ended)		.57	%		.49	%		.30	%		.20	%		.27	%
Allowance for loan and lease losses to loans		1.22			1.21			1.09			1.09			1.10
Allowance for loan and lease losses to nonperforming loans		159			190			290			322			388

Supplemental Information
Commercial lending net charge-offs (b)	$	(74	)	$	(62	)	$	(36	)	$	(19	)	$	(24	)
Consumer lending net charge-offs (c)		(24	)		(21	)		(13	)		(13	)		(12	)

Total net charge-offs	$	(98	)	$	(83	)	$	(49	)	$	(32	)	$	(36	)
Net charge-offs to average loans
Commercial lending		.72	%		.63	%		.38	%		.21	%		.33	%
Consumer lending		.34			.30			.19			.20			.20


(b) Includes commercial, commercial real estate and equipment lease financing.
(c) Includes consumer and residential mortgage.

Change in Allowance for Unfunded Loan Commitments and Letters of Credit

*Three months ended - in millions*	March 31 2008			December 31 2007			September 30 2007			June 30 2007			March 31 2007

Beginning balance	$	134		$	127		$	125		$	121		$	120
Acquired allowance—Mercantile														17
Net change in allowance for unfunded loan commitments and letters of credit		18			7			2			4			(16	)

Ending balance	$	152		$	134		$	127		$	125		$	121


Net Unfunded Commitments

*In millions*	March 31 2008			December 31 2007			September 30 2007			June 30 2007			March 31 2007
Net unfunded commitments	$	52,426		$	53,347		$	52,590		$	50,678		$	49,263

Page 8

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type


*Period ended - in millions*	March 31 2008			December 31 2007			September 30 2007			June 30 2007			March 31 2007
Nonaccrual loans
Commercial
Retail/wholesale	$	32		$	39		$	41		$	23		$	33
Manufacturing		47			35			41			39			36
Other service providers		68			48			38			30			26
Real estate related (a)		63			45			15			9			10
Financial services		16			15			1			1
Health care		4			4			4			5			2
Other		8			7			4			19			14

Total commercial		238			193			144			126			121
Commercial real estate
Real estate projects		251			184			64			59			24
Mortgage		22			28			11			3			1

Total commercial real estate		273			212			75			62			25
Consumer		19			17			15			14			14
Residential mortgage		10			10			10			14			16
Lease financing		3			3			3			2			2

Total nonaccrual loans		543			435			247			218			178
Restructured loans		2			2

Total nonperforming loans		545			437			247			218			178
Foreclosed and other assets
Residential mortgage		21			16			16			12			11
Lease financing		11			11			12			12			12
Other		10			14			11			4			3

Total foreclosed and other assets		42			41			39			28			26

Total nonperforming assets (b) (c)	$	587		$	478		$	286		$	246		$	204

Nonperforming loans to total loans		.77	%		.64	%		.38	%		.34	%		.28	%
Nonperforming assets to total loans and foreclosed assets		.83			.70			.43			.38			.32
Nonperforming assets to total assets		.42			.34			.22			.20			.17

(a) Includes loans related to customers in the real estate, rental, leasing and construction industries.
(b) Excludes equity management assets carried at estimated fair value (amounts include troubled debt restructured assets of $4 million at September 30, 2007, June 30, 2007 and March 31, 2007):	$	5		$	4		$	12		$	13		$	15
(c) Excludes loans held for sale carried at lower of cost or market value (amounts include troubled debt restructured assets of $21 million at March 31, 2008):	$	35		$	25		$	7		$	17		$	18

Page 9

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited) (Continued)

Change in Nonperforming Assets


*In millions*	Three months ended
January 1, 2008	$	478
Transferred in		274
Principal activity including payoffs		(46	)
Charge-offs/valuation adjustments		(87	)
Returned to performing		(30	)
Asset sales		(2	)

March 31, 2008	$	587

Largest Individual Nonperforming Assets at March 31, 2008 - in millions (b)


Ranking	Outstandings			Industry
1	$	20		Construction
2		19		Construction
3		13		Construction
4		13		Construction
5		13		Finance and Insurance
6		12		Construction
7		11		Transportation and Warehousing
8		11		Construction
9		11		Construction
10		10		Construction

Total	$	133

As a percent of total nonperforming assets		21	%

(b)	Amounts shown are not net of related allowance for loan and lease losses, if applicable.

Page 10

THE PNC FINANCIAL SERVICES GROUP, INC.

Business Segment Products and Services (Unaudited)

Retail Banking provides deposit, lending, brokerage, trust, investment management, and cash management services to approximately 2.9 million consumer and small business customers within our primary geographic markets. Our customers are serviced through approximately 1,100 offices in our branch network, the call center located in Pittsburgh, and the Internet – www.pncbank.com. The branch network is located primarily in Pennsylvania, New Jersey, Washington, D.C., Maryland, Virginia, Ohio, Kentucky and Delaware. Brokerage services are provided through PNC Investments, LLC and, prior to March 31, 2008, J.J.B. Hilliard, W.L. Lyons, Inc. (“Hilliard Lyons”). On March 31, 2008, PNC sold Hilliard Lyons to Houchens Industries, Inc.

Retail Banking also serves as investment manager and trustee for employee benefit plans and charitable and endowment assets and provides nondiscretionary defined contribution plan services. These services are provided to individuals and corporations primarily within our primary geographic markets.

Corporate & Institutional Banking provides lending, treasury management, and capital markets-related products and services to mid-sized corporations, government entities, and selectively to large corporations. Lending products include secured and unsecured loans, letters of credit and equipment leases. Treasury management services include cash and investment management, receivables management, disbursement services, funds transfer services, information reporting, and global trade services. Capital markets-related products and services include foreign exchange, derivatives, loan syndications, mergers and acquisitions advisory and related services to middle-market companies, securities underwriting, and securities sales and trading. We also provide commercial loan servicing, real estate advisory and technology solutions for the commercial real estate finance industry. Corporate & Institutional Banking provides products and services generally within our primary geographic markets, with certain products and services provided nationally.

BlackRock is one of the largest publicly traded investment management firms in the United States with $1.364 trillion of assets under management at March 31, 2008. BlackRock manages assets on behalf of institutional and individual investors worldwide through a variety of fixed income, cash management, equity and balanced and alternative investment separate accounts and funds. In addition, BlackRock provides risk management, investment system outsourcing and financial advisory services globally to institutional investors. At March 31, 2008, PNC’s ownership interest in BlackRock was approximately 33.4%.

PFPC is a leading full service provider of processing, technology and business solutions for the global investment industry. Securities services include custody, securities lending, and accounting and administration for funds registered under the 1940 Act and alternative investments. Investor services include transfer agency, subaccounting, and distribution. Financial advisor services include managed accounts and information management. PFPC serviced $2.6 trillion in total assets and 76 million shareholder accounts as of March 31, 2008 both domestically and internationally through its Ireland and Luxembourg operations.

Page 11

THE PNC FINANCIAL SERVICES GROUP, INC.

Summary of Business Segment Earnings and Revenue (Unaudited)


	*Three months ended*
*In millions* (a) (b)	March 31 2008		December 31 2007			September 30 2007		June 30 2007		March 31 2007
Earnings
Retail Banking	$	221	$	215		$	250	$	227	$	201
Corporate & Institutional Banking		2		91			87		122		132
PFPC		30		32			33		32		31
Other, including BlackRock (b)		124		(160	)		37		42		95

Total consolidated net income	$	377	$	178		$	407	$	423	$	459

Revenue (c)
Retail Banking	$	1,121	$	999		$	985	$	978	$	839
Corporate & Institutional Banking		242		399			388		381		370
PFPC (d)		228		214			209		208		200
Other, including BlackRock (b)		239		22			175		154		211

Total consolidated revenue	$	1,830	$	1,634		$	1,757	$	1,721	$	1,620

(a)	Our business information is presented based on our management accounting practices and our management structure. We refine our methodologies from time to time as our management accounting practices are enhanced and our businesses and management structure change.

(b)

We consider BlackRock to be a separate reportable business segment but have combined its results with Other for this presentation. Our Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 will provide additional business segment disclosures for BlackRock. Generally, PNC’s business segment earnings from BlackRock can be estimated by multiplying our approximately 33.4% ownership interest by BlackRock’s reported GAAP earnings, less the additional income taxes recorded by PNC on those earnings. The effective tax rate on those earnings is typically different than PNC’s consolidated effective tax rate due to the tax treatment of dividends received, if any, from BlackRock. PNC’s effective tax rate on its earnings from BlackRock for the first quarter of 2008 was approximately 25.2%.

(c)

Business revenue is presented on a taxable-equivalent basis. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of yields and margins for all earning assets, we also provide revenue on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP in the Consolidated Income Statement. The following is a reconciliation of total consolidated revenue on a book (GAAP) basis to total consolidated revenue on a taxable-equivalent basis (in millions):


	*Three months ended*
	March 31 2008		December 31 2007		September 30 2007		June 30 2007		March 31 2007
Total consolidated revenue, book (GAAP) basis	$	1,821	$	1,627	$	1,751	$	1,713	$	1,614
Taxable-equivalent adjustment		9		7		6		8		6

Total consolidated revenue, taxable-equivalent basis	$	1,830	$	1,634	$	1,757	$	1,721	$	1,620

(d)	PFPC revenue represents the sum of servicing revenue and nonoperating income (expense) less debt financing costs.


	March 31 2008	December 31 2007	September 30 2007	June 30 2007	March 31 2007
Period-end Employees
Full-time employees:
Retail Banking	11,014	12,036	11,753	11,804	11,838
Corporate & Institutional Banking	2,218	2,290	2,267	2,084	2,038
PFPC	4,865	4,784	4,504	4,522	4,400
Other
Operations & Technology	4,426	4,379	4,243	4,501	4,493
Staff Services	1,969	1,991	2,044	2,115	2,059

Total Other	6,395	6,370	6,287	6,616	6,552

Total full-time employees	24,492	25,480	24,811	25,026	24,828
Total part-time employees	2,843	2,840	2,823	3,028	2,867

Total employees	27,335	28,320	27,634	28,054	27,695

The period-end employee statistics disclosed for each business reflect staff directly employed by the respective business and exclude operations, technology and staff services employees. Yardville employees are included in the Retail Banking, Corporate & Institutional Banking, and Other businesses at March 31, 2008 and December 31, 2007. PFPC statistics are provided on a legal entity basis. Statistics at March 31, 2008 exclude Hilliard Lyons employees.

Page 12

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited)


	*Three months ended*
*Taxable-equivalent basis* (a) *Dollars in millions*	March 31 2008			December 31 2007			September 30 2007			June 30 2007			March 31 2007
	March 31 2008			December 31 2007			September 30 2007			June 30 2007			March 31 2007
INCOME STATEMENT
Net interest income	$	499		$	543		$	535		$	535		$	452
Noninterest income		622			456			450			443			387

Total revenue		1,121			999			985			978			839
Provision for credit losses		104			70			8			37			23
Noninterest expense		581			587			577			579			496

Pretax earnings		436			342			400			362			320
Income taxes		215			127			150			135			119

Earnings	$	221		$	215		$	250		$	227		$	201

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	14,366		$	14,417		$	14,296		$	14,237		$	13,881
Indirect		2,026			2,031			2,033			2,036			1,480
Education		844			108			110			106			115
Other consumer		1,636			1,580			1,500			1,490			1,375

Total consumer		18,872			18,136			17,939			17,869			16,851
Commercial and commercial real estate		14,393			14,020			13,799			13,678			8,201
Floor plan		1,020			983			939			1,037			952
Residential mortgage		2,440			2,500			2,050			2,038			1,781
Other		208			225			230			235			233

Total loans		36,933			35,864			34,957			34,857			28,018
Goodwill and other intangible assets		5,945			5,792			5,703			5,737			2,942
Loans held for sale		1,131			1,572			1,567			1,554			1,562
Other assets		1,847			2,487			2,848			2,626			1,927

Total assets	$	45,856		$	45,715		$	45,075		$	44,774		$	34,449

Deposits
Noninterest-bearing demand (b)	$	10,458		$	10,967		$	11,191		$	11,065		$	8,871
Interest-bearing demand		9,237			9,173			8,869			9,097			8,354
Money market		17,732			17,328			17,020			17,100			15,669

Total transaction deposits		37,427			37,468			37,080			37,262			32,894
Savings		2,609			2,651			2,831			2,981			2,243
Certificates of deposit		16,321			16,768			16,502			17,531			15,738

Total deposits		56,357			56,887			56,413			57,774			50,875
Other liabilities		545			577			540			679			708
Capital		3,638			3,626			3,595			3,724			3,287

Total funds	$	60,540		$	61,090		$	60,548		$	62,177		$	54,870

PERFORMANCE RATIOS
Return on average capital		24	%		24	%		28	%		24	%		25	%
Noninterest income to total revenue		55			46			46			45			46
Efficiency		52			59			59			59			59

(a)	See notes (a) and (c) on page 12.

(b)	Average balance for the first quarter of 2008 reflects a transfer of $140 million to the Corporate & Institutional Banking business segment.

Page 13

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (Continued)


	*Three months ended*
*Dollars in millions except as noted*	March 31 2008			December 31 2007			September 30 2007			June 30 2007			March 31 2007
OTHER INFORMATION (a) (b)
Credit-related statistics:
Nonperforming assets	$	259		$	225		$	137		$	140		$	123
Net charge-offs (c)	$	84		$	45		$	34		$	25		$	27
Annualized net charge-off ratio (c)		.91	%		.50	%		.39	%		.29	%		.39	%

Other statistics:
Full-time employees		11,014			12,036			11,753			11,804			11,838
Part-time employees		2,322			2,309			2,248			2,360			2,224
ATMs		3,903			3,900			3,870			3,917			3,862
Branches (d)		1,096			1,109			1,072			1,084			1,077
Gains on sales of education loans (e)				$	4		$	12		$	5		$	3

ASSETS UNDER ADMINISTRATION (in billions) (f)
Assets under management
Personal	$	46		$	53		$	57		$	55		$	54
Institutional		19			20			20			22			22

Total	$	65		$	73		$	77		$	77		$	76

Asset Type
Equity	$	36		$	42		$	44		$	43		$	41
Fixed income		17			18			20			20			20
Liquidity/Other		12			13			13			14			15

Total	$	65		$	73		$	77		$	77		$	76

Nondiscretionary assets under administration
Personal	$	30		$	30		$	31		$	30		$	31
Institutional		81			83			81			81			80

Total	$	111		$	113		$	112		$	111		$	111

Asset Type
Equity	$	46		$	49		$	50		$	47		$	42
Fixed income		27			28			27			28			28
Liquidity/Other		38			36			35			36			41

Total	$	111		$	113		$	112		$	111		$	111

(a)	Presented as of period-end, except for net charge-offs, annualized net charge-off ratio and gains on sales of education loans. Information as of March 31, 2008 excludes Hilliard Lyons, which was sold as of that date.

(b)	Amounts subsequent to October 26, 2007 include the impact of Yardville.

(c)	Increase in the first quarter of 2008 relates to the impact of aligning small business and consumer loan charge-off policies.

(d)	Excludes certain satellite branches that provide limited products and service hours.

(e)	Included in “Noninterest income” on page 13.

(f)	Excludes brokerage account assets.

Page 14

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (Continued)


*Dollars in millions except as noted*	March 31 2008			December 31 2007 (b)			September 30 2007			June 30 2007 (b)			March 31 2007 (b)
OTHER INFORMATION (a) (b)
Home equity portfolio credit statistics:
% of first lien positions (c)		39	%		39	%		39	%		42	%		43	%
Weighted average loan-to-value ratios (c)		72	%		73	%		72	%		70	%		70	%
Weighted average FICO scores (d)		725			727			726			727			726
Annualized net charge-off ratio		.35	%		.26	%		.16	%		.18	%		.18	%
Loans 90 days past due		.42	%		.37	%		.30	%		.26	%		.25	%

Checking-related statistics:
Retail Banking checking relationships		2,305,000			2,272,000			2,275,000			1,967,000			1,962,000
Consumer DDA households using online banking		1,128,000			1,091,000			1,050,000			975,000			960,000
% of consumer DDA households using online banking		55	%		54	%		52	%		55	%		54	%
Consumer DDA households using online bill payment		723,000			667,000			604,000			505,000			450,000
% of consumer DDA households using online bill payment		35	%		33	%		30	%		29	%		25	%

Small business loans and managed deposits:
Small business loans	$	13,778		$	13,049		$	13,157		$	5,410		$	5,284
Managed deposits:
On-balance sheet
Noninterest-bearing demand (e)	$	5,946		$	5,994		$	6,119		$	4,250		$	4,284
Interest-bearing demand		1,911			1,873			2,027			1,505			1,517
Money market		3,398			3,152			3,389			2,595			2,635
Certificates of deposit		1,030			1,068			1,070			584			681
Off-balance sheet (f)
Small business sweep checking		2,976			2,780			2,823			1,933			1,827

Total managed deposits	$	15,261		$	14,867		$	15,428		$	10,867		$	10,944

Brokerage statistics:
Margin loans				$	151		$	161		$	162		$	166
Financial consultants (g)		387			769			765			767			757
Full service brokerage offices		24			100			100			99			99
Brokerage account assets (billions)	$	18		$	48		$	49		$	47		$	46

(a)	Presented as of period-end, except for the annualized net charge-off ratio, which is for the three months ended. Information as of March 31, 2008 excludes Hilliard Lyons, which was sold as of that date.

(b)

This information excludes the impact of acquisitions between PNC’s acquisition date and the date of conversion of the acquired companies’ data onto PNC’s financial and operational systems because such information was not available prior to the conversion date. Therefore, information presented above as of June 30, 2007 and March 31, 2007 excludes the impact of Mercantile, which PNC acquired effective March 2, 2007 and converted during September 2007. Similarly, information presented above as of December 31, 2007 (except “Brokerage statistics”) excludes the impact of Yardville, which PNC acquired effective October 26, 2007 and converted during March 2008.

(c)	Includes loans from acquired portfolios for which lien position and loan-to-value information was limited.

(d)	Represents the most recent FICO scores we have on file.

(e)	Average balance for the first quarter of 2008 reflects a transfer of $140 million to the Corporate & Institutional Banking business segment.

(f)	Represents small business balances. These balances are swept into liquidity products managed by other PNC business segments, the majority of which are off-balance sheet.

(g)	Financial consultants provide services in full service brokerage offices and PNC traditional branches.

Page 15

THE PNC FINANCIAL SERVICES GROUP, INC.

Corporate & Institutional Banking (Unaudited)


	*Three months ended*
*Taxable-equivalent basis* (a) *Dollars in millions except as noted*	March 31 2008			December 31 2007			September 30 2007			June 30 2007			March 31 2007
	March 31 2008			December 31 2007			September 30 2007			June 30 2007			March 31 2007
INCOME STATEMENT
Net interest income	$	241		$	237		$	204		$	194		$	183
Noninterest income
Corporate service fees		123			137			161			139			127
Other		(122	)		25			23			48			60

Noninterest income		1			162			184			187			187

Total revenue		242			399			388			381			370
Provision for (recoveries of) credit losses		49			69			55			17			(16	)
Noninterest expense		215			222			211			192			193

Pretax earnings (loss)		(22	)		108			122			172			193
Income taxes (benefit)		(24	)		17			35			50			61

Earnings	$	2		$	91		$	87		$	122		$	132

AVERAGE BALANCE SHEET
Loans
Corporate (b)	$	11,333		$	10,747		$	10,108		$	9,766		$	9,068
Commercial real estate		5,146			4,938			4,538			4,537			3,569
Commercial - real estate related		2,902			2,637			2,347			2,299			2,270
Asset-based lending		4,974			4,748			4,601			4,525			4,501

Total loans (b)		24,355			23,070			21,594			21,127			19,408
Goodwill and other intangible assets		2,191			2,232			2,085			1,837			1,544
Loans held for sale		2,418			1,781			1,207			982			1,302
Other assets		6,281			4,641			4,544			4,531			4,244

Total assets	$	35,245		$	31,724		$	29,430		$	28,477		$	26,498

Deposits
Noninterest-bearing demand	$	7,481		$	7,851		$	7,238		$	6,953		$	7,083
Money market		5,026			4,995			4,960			4,653			4,530
Other		2,029			1,818			1,436			1,113			926

Total deposits		14,536			14,664			13,634			12,719			12,539
Other liabilities		5,679			4,452			3,109			2,960			2,850
Capital		2,462			2,357			2,132			2,050			2,064

Total funds	$	22,677		$	21,473		$	18,875		$	17,729		$	17,453

PERFORMANCE RATIOS
Return on average capital					15	%		16	%		24	%		26	%
Noninterest income to total revenue					41			47			49			51
Efficiency		89	%		56			54			50			52

COMMERCIAL MORTGAGE SERVICING PORTFOLIO (in billions)
Beginning of period	$	243		$	244		$	222		$	206		$	200
Acquisitions/additions		5			8			36			28			16
Repayments/transfers		(4	)		(9	)		(14	)		(12	)		(10	)

End of period (c)	$	244		$	243		$	244		$	222		$	206

OTHER INFORMATION
Consolidated revenue from: (d)
Treasury Management	$	133		$	131		$	121		$	114		$	110
Capital Markets	$	76		$	74		$	73		$	76		$	67
Commercial mortgage loans and commitments held for sale valuations, net of hedges (e)	$	(177	)	$	(30	)
Other commercial mortgage banking activities	$	81		$	76		$	66		$	67		$	73

Commercial mortgage banking activities, including valuation adjustments	$	(96	)	$	46		$	66		$	67		$	73
Total loans (f)	$	24,981		$	23,861		$	22,455		$	21,662		$	21,193
Nonperforming assets (f)	$	317		$	243		$	141		$	100		$	77
Net charge-offs	$	15		$	39		$	15		$	7		$	9
Full-time employees (f)		2,218			2,290			2,267			2,084			2,038
Net carrying amount of commercial mortgage servicing rights (c) (f)	$	678		$	694		$	708		$	493		$	487

(a)	See notes (a) and (c) on page 12.

(b)	Includes lease financing.

(c)	Amounts at March 31, 2008, December 31, 2007 and September 30, 2007 include the impact of the July 2, 2007 acquisition of ARCS Commercial Mortgage.

(d)	Represents consolidated PNC amounts.

(e)	Included in other noninterest income above.

(f)	Presented as of period end.

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THE PNC FINANCIAL SERVICES GROUP, INC.

PFPC (Unaudited) (a)


	*Three months ended*
*Dollars in millions except as noted*	March 31 2008			December 31 2007			September 30 2007			June 30 2007			March 31 2007
INCOME STATEMENT
Servicing revenue (b)	$	238		$	223		$	216		$	216		$	208
Operating expense (b)		181			167			159			158			153

Operating income		57			56			57			58			55
Debt financing		11			10			9			9			10
Nonoperating income (c)		1			1			2			1			2

Pretax earnings		47			47			50			50			47
Income taxes		17			15			17			18			16

Earnings	$	30		$	32		$	33		$	32		$	31

PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	1,311		$	1,315		$	1,002		$	1,005		$	1,008
Other assets		1,388			1,161			1,169			1,395			1,370

Total assets	$	2,699		$	2,476		$	2,171		$	2,400		$	2,378

Debt financing	$	986		$	989		$	702		$	734		$	760
Other liabilities		1,070			865			878			1,109			1,091
Shareholder’s equity		643			622			591			557			527

Total funds	$	2,699		$	2,476		$	2,171		$	2,400		$	2,378

PERFORMANCE RATIOS
Return on average equity		19	%		21	%		23	%		24	%		25
Operating margin (d)		24			25			26			27			26

SERVICING STATISTICS (at period end)
Accounting/administration net fund assets (in billions)(e)
Domestic	$	875		$	869		$	806		$	765		$	731
Offshore		125			121			116			103			91

Total	$	1,000		$	990		$	922		$	868		$	822

Asset type (in billions)(e)
Money market	$	413		$	373		$	328		$	286		$	280
Equity		358			390			377			373			352
Fixed income		128			123			117			118			111
Other		101			104			100			91			79

Total	$	1,000		$	990		$	922		$	868		$	822

Custody fund assets (in billions)	$	476		$	500		$	497		$	467		$	435

Shareholder accounts (in millions)
Transfer agency		19			19			19			20			18
Subaccounting		57			53			51			50			50

Total		76			72			70			70			68

OTHER INFORMATION
Period-end full-time employees		4,865			4,784			4,504			4,522			4,400

(a)	See note (a) on page 12.

(b)

Certain out-of-pocket expense items which are then client billable are included in both servicing revenue and operating expense above, but offset each other entirely and therefore have no net effect on operating income. Distribution revenue and expenses which relate to 12b-1 fees that PFPC receives from certain fund clients for the payment of marketing, sales and service expenses also entirely offset each other, but are netted for presentation purposes above.

(c)	Net of nonoperating expense.

(d)	Total operating income divided by servicing revenue.

(e)	Includes alternative investment net assets serviced.

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THE PNC FINANCIAL SERVICES GROUP, INC.

Glossary of Terms

Accounting/administration net fund assets - Net domestic and foreign fund investment assets for which we provide accounting and administration services. We do not include these assets on our Consolidated Balance Sheet.

Adjusted average total assets - Primarily comprised of total average quarterly (or annual) assets plus (less) unrealized losses (gains) on available-for-sale debt securities, less goodwill and certain other intangible assets (net of eligible deferred taxes).

Annualized - Adjusted to reflect a full year of activity.

Assets under management - Assets over which we have sole or shared investment authority for our customers/clients. We do not include these assets on our Consolidated Balance Sheet.

Basis point - One hundredth of a percentage point.

Charge-off - Process of removing a loan or portion of a loan from our balance sheet because it is considered uncollectible. We also record a charge-off when a loan is transferred to held for sale by reducing the carrying amount by the allowance for loan losses associated with such loan or if the market value is less than its carrying amount.

Common shareholders’ equity to total assets - Common shareholders’ equity divided by total assets. Common shareholders’ equity equals total shareholders’ equity less the liquidation value of preferred stock.

Credit spread - The difference in yield between debt issues of similar maturity. The excess of yield attributable to credit spread is often used as a measure of relative creditworthiness, with a reduction in the credit spread reflecting an improvement in the borrower’s perceived creditworthiness.

Custody assets - Investment assets held on behalf of clients under safekeeping arrangements. We do not include these assets on our Consolidated Balance Sheet. Investment assets held in custody at other institutions on our behalf are included in the appropriate asset categories on the Consolidated Balance Sheet as if physically held by us.

Derivatives - Financial contracts whose value is derived from publicly traded securities, interest rates, currency exchange rates or market indices. Derivatives cover a wide assortment of financial contracts, including forward contracts, futures, options and swaps.

Duration of equity - An estimate of the rate sensitivity of our economic value of equity. A negative duration of equity is associated with asset sensitivity (i.e., positioned for rising interest rates), while a positive value implies liability sensitivity (i.e., positioned for declining interest rates). For example, if the duration of equity is +1.5 years, the economic value of equity declines by 1.5% for each 100 basis point increase in interest rates.

Earning assets - Assets that generate income, which include: federal funds sold; resale agreements; other short-term investments, including trading securities; loans held for sale; loans, net of unearned income; securities; and certain other assets.

Economic capital - Represents the amount of resources that a business segment should hold to guard against potentially large losses that could cause insolvency. It is based on a measurement of economic risk, as opposed to risk as defined by regulatory bodies. The economic capital measurement process involves converting a risk distribution to the capital that is required to support the risk, consistent with our target credit rating. As such, economic risk serves as a “common currency” of risk that allows us to compare different risks on a similar basis.

Effective duration - A measurement, expressed in years, that, when multiplied by a change in interest rates, would approximate the percentage change in value of on- and off- balance sheet positions.

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THE PNC FINANCIAL SERVICES GROUP, INC.

Glossary of Terms (Continued)

Efficiency - Noninterest expense divided by the sum of net interest income (GAAP basis) and noninterest income.

Funds transfer pricing - A management accounting methodology designed to recognize the net interest income effects of sources and uses of funds provided by the assets and liabilities of a business segment. We assign these balances LIBOR-based funding rates at origination that represent the interest cost for us to raise/invest funds with similar maturity and repricing structures.

Futures and forward contracts - Contracts in which the buyer agrees to purchase and the seller agrees to deliver a specific financial instrument at a predetermined price or yield. May be settled either in cash or by delivery of the underlying financial instrument.

GAAP - Accounting principles generally accepted in the United States of America.

Leverage ratio - Tier 1 risk-based capital divided by adjusted average total assets.

Net interest income from loans and deposits - A management accounting assessment, using funds transfer pricing methodology, of the net interest contribution from loans and deposits.

Net interest margin - Annualized taxable-equivalent net interest income divided by average earning assets.

Nondiscretionary assets under administration - Assets we hold for our customers/clients in a non-discretionary, custodial capacity. We do not include these assets on our Consolidated Balance Sheet.

Noninterest income to total revenue - Noninterest income divided by the sum of net interest income (GAAP basis) and noninterest income.

Nonperforming assets - Nonperforming assets include nonaccrual loans, troubled debt restructured loans, foreclosed assets and other assets. We do not accrue interest income on assets classified as nonperforming.

Nonperforming loans - Nonperforming loans include loans to commercial, commercial real estate, equipment lease financing, consumer, and residential mortgage customers as well as troubled debt restructured loans. Nonperforming loans do not include loans held for sale or foreclosed and other assets. We do not accrue interest income on loans classified as nonperforming.

Notional amount - A number of currency units, shares, or other units specified in a derivatives contract.

Operating leverage - The period to period percentage change in total revenue (GAAP basis) less the percentage change in noninterest expense. A positive percentage indicates that revenue growth exceeded expense growth (i.e., positive operating leverage) while a negative percentage implies expense growth exceeded revenue growth (i.e., negative operating leverage).

Recovery - Cash proceeds received on a loan that we had previously charged off. We credit the amount received to the allowance for loan and lease losses.

Return on average capital - Annualized net income divided by average capital.

Return on average assets - Annualized net income divided by average assets.

Return on average common equity - Annualized net income divided by average common shareholders’ equity.

Risk-weighted assets - Primarily computed by the assignment of specific risk-weights (as defined by The Board of Governors of the Federal Reserve System) to assets and off-balance sheet instruments.

Securitization - The process of legally transforming financial assets into securities.

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THE PNC FINANCIAL SERVICES GROUP, INC.

Glossary of Terms (Continued)

Tangible common equity ratio - Period-end common shareholders’ equity less goodwill and other intangible assets (net of eligible deferred taxes), and excluding loan servicing rights, divided by period-end assets less goodwill and other intangible assets (net of eligible deferred taxes), and excluding loan servicing rights.

Taxable-equivalent interest - The interest income earned on certain assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of yields and margins for all interest-earning assets, we also provide revenue on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on other taxable investments. This adjustment is not permitted under GAAP on the Consolidated Income Statement.

Tier 1 risk-based capital - Tier 1 risk-based capital equals: total shareholders’ equity, plus trust preferred capital securities, plus certain minority interests that are held by others; less goodwill and certain other intangible assets (net of eligible deferred taxes), less equity investments in nonfinancial companies and less net unrealized holding losses on available-for-sale equity securities. Net unrealized holding gains on available-for-sale equity securities, net unrealized holding gains (losses) on available-for-sale debt securities and net unrealized holding gains (losses) on cash flow hedge derivatives are excluded from total shareholders’ equity for Tier 1 risk-based capital purposes.

Tier 1 risk-based capital ratio - Tier 1 risk-based capital divided by period-end risk-weighted assets.

Total fund assets serviced - Total domestic and offshore fund investment assets for which we provide related processing services. We do not include these assets on our Consolidated Balance Sheet.

Total return swap - A non-traditional swap where one party agrees to pay the other the “total return” of a defined underlying asset (e.g., a loan), usually in return for receiving a stream of LIBOR-based cash flows. The total returns of the asset, including interest and any default shortfall, are passed through to the counterparty. The counterparty is therefore assuming the credit and economic risk of the underlying asset.

Total risk-based capital - Tier 1 risk-based capital plus qualifying subordinated debt and trust preferred securities, other minority interest not qualified as Tier 1, and the allowance for loan and lease losses, subject to certain limitations.

Total risk-based capital ratio - Total risk-based capital divided by period-end risk-weighted assets.

Transaction deposits - The sum of money market and interest-bearing demand deposits and demand and other noninterest-bearing deposits.

Yield curve - A graph showing the relationship between the yields on financial instruments or market indices of the same credit quality with different maturities. For example, a “normal” or “positive” yield curve exists when long-term bonds have higher yields than short-term bonds. A “flat” yield curve exists when yields are the same for short-term and long-term bonds. A “steep” yield curve exists when yields on long-term bonds are significantly higher than on short-term bonds. An “inverted” or “negative” yield curve exists when short-term bonds have higher yields than long-term bonds.

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